Reassessing The Changing Outlook For Nordstrom Inc. (JWN)


    BlackRock Fund Advisors recently announced the acquisition of new stake in Nordstrom Inc. (NYSE:JWN). The institutional investor has increased its shareholding in the Consumer Cyclical company by 42.46% to 8.68 million shares with purchase of 2.59 million shares. This fresh investment now brings its stake to 5.53% valued currently at $118.79 million. In addition, JPMorgan Investment Management, I.. raised its holdings by 0.21 million to 5.24 million shares. And Mellon Investments Corp. has lifted its position by 6.25% or 0.3 million shares – to 5.1 million shares.

    With over 7.52 million Nordstrom Inc. (JWN) shares trading Friday and a closing price of $14.48 on the day, the dollar volume was approximately $108.84 million. The shares have shown a negative weekly performance of -15.42% and its price on 08/21/20 lost nearly -1.96%. Currently, there are 156.40M common shares owned by the public and among those 105.71M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 22 analysts who have offered their price forecasts for JWN have a consensus price objective of $18.78. The analysts have set the share’s price value over the next 12 months at a high of $30.00 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Nordstrom Inc. stock is 3.10 for the next 12 months. The average price target is 25.74% above its last price level and an upside to the estimated low will see the stock lose -20.67% over that period. But an upside of 51.73% will see the stock hit the forecast high price target while mean target price for the stock is $18.00.

    Insiders at the company have transacted a total of 60 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 32 of these insider trades were purchases, accounting for 595,804 shares. Insider sales of the common stock occurred on 28 occasions, with total insider shares sold totaling 310,945 shares.

    The top 3 mutual fund holders in Nordstrom Inc. are American Funds Income Fund of Ame, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. American Funds Income Fund of Ame owns 4.24 million shares of the company’s stock, all valued at over $58.07 million. The company sold -0.48 million shares recently to bring their total holdings to about 2.70% of the shares outstanding. Vanguard Total Stock Market Index sold 2171.0 shares to see its total holdings shrink to 3.15 million shares valued at over $43.08 million and representing 2.00% of the shares outstanding. iShares Core S&P Mid Cap ETF sold 5526.0 shares to bring its total holdings to over 2.89 million shares at a value of $39.53 million. iShares Core S&P Mid Cap ETF now owns shares totaling to 1.84% of the shares outstanding.

    Shares of Nordstrom Inc. (NYSE: JWN) opened at $14.88, up $0.11 from a prior closing price of $14.77. However, the script later closed the day at $14.48, down -1.96%. The company’s stock has a 5-day price change of -15.42% and -7.54% over the past three months. JWN shares are trading -64.62% year to date (YTD), with the 12-month market performance down to -52.91% lower. It has a 12-month low price of $12.27 and touched a high of $43.37 over the same period. Currently, 7.52 million shares have been traded, compared to an average intraday trading volume of 10.08 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -6.13%, -8.67%, and -44.58% respectively.

    Institutional ownership of Nordstrom Inc. (NYSE: JWN) shares accounts for 71.00% of the company’s 156.40M shares outstanding. Mutual fund holders own 37.85%, while other institutional holders and individual stakeholders account for 47.70% and 28.22% respectively.

    It has a market capitalization of $2.32B and a beta (3y monthly) value of 1.40. The earnings-per-share (ttm) stands at -$0.39. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.10% over the week and 5.45% over the month.

    Analysts forecast that Nordstrom Inc. (JWN) will achieve an EPS of -$1.48 for the current quarter, $0.46 for the next quarter and $1.79 for 2022. The lowest estimate earnings-per-share for the quarter is -$1.87 while analysts give the company a high EPS estimate of -$0.86. Comparatively, EPS for the current quarter was $0.9 a year ago. Earnings per share for the fiscal year are expected to decrease by -3.40%, and 150.70% over the next financial year. EPS should shrink at an annualized rate of -3.60% over the next five years, compared to -3.10% over the past 5-year period.

    Looking at the support for the JWN, a number of firms have released research notes about the stock. Telsey Advisory Group stated their Market Perform rating for the stock in a research note on July 08, 2020, with the firm’s price target at $21-$18. Telsey Advisory Group coverage for the Nordstrom Inc. (JWN) stock in a research note released on May 29, 2020 offered a Market Perform rating with a price target of $21. Telsey Advisory Group was of a view on May 26, 2020 that the stock is Market Perform, while Telsey Advisory Group gave the stock Market Perform rating on March 04, 2020, issuing a price target of $40- $35. Barclays on their part issued Underweight rating on March 04, 2020.


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